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Skills solutions for business

Helping businesses to improve the skills of their employees and supporting individuals to improve their skills for business

Purpose

Improve productivity, business performance and individual achievement through investment in the skills and competencies of the workforce and potential entrepreneurs, helping the UK become a world leader in skills by 2020.

How will this be achieved?

Through high quality, responsive public, private and third sector provision delivered across England.

Why offer public sector support?

The UK’s workforce is poorly skilled compared to major competitor countries and will not be in a position to compete within a global economy in the years to come. The principal argument for government intervention in supporting businesses train their staff is that some of the benefits of employer investment in training is captured by others, particularly when investing in the training of the least skilled and qualified. Part of the solution is for employers to be supported in realising the business benefits in investing in skills solutions, but also in being supported to the right solution through brokerage.

UK entrepreneurial activity is also low in the UK compared to that in other countries in part due to lack of practical skills for business, particularly amongst certain social groups resulting in the under-performance of many businesses and poor outcomes for low-skilled individuals in terms of social inclusion, employment and earnings. There is, therefore, a strong equity case to improve the skill levels of those who are economically inactive or from disadvantaged groups – and for whom a lack of basic skills acts as a barrier to start up.

What will be offered?

From April 2009, through an integrated brokerage service or directly through providers, employers and potential entrepreneurs will have access to high quality advice and guidance to create a skills solution that best meets their needs.

Support will be available to all employers, including those from disadvantaged groups or areas. Support will be available for:

• businesses of all sizes with low skilled employees, support to help them gain their first basic skills qualification, first full level 2 qualification and, depending on sector and geographical location of organisation and chosen provider, subsidisies for subsequent qualifications to update skills or gain a more technical and specialised qualification, including first level of management;
• businesses with 20 to 250 employees, subsidised support for owners/managers to develop their leadership and management skills at various levels;
• individuals needing higher level skills subsidised support for individuals to achieve first full level 4, depending on sector and geographical location of business and chosen provider; and
• potential entrepreneurs from under represented and economically disadvantaged groups to help them gain the skills and awareness required to start a business, including appropriate language skills,. and skills to realise the opportunities for social enterprise.

Specialist support will also available to encourage innovation in the workplace. This will include knowledge management, intellectual property management, sharing best practice, exploration and introduction of new technologies.

Who will be eligible?

All employers will be eligible, although the focus will be on those employers who would not otherwise have engaged in training or those from disadvantaged groups or in deprived areas. Skills support will also be available to disadvantaged individuals who have an identified potential for enterprise.